Forex for Beginners Answering all your questions about Forex! What is lot size and what’s smallest lot size forex news risk? Currencies in Forex are traded in Lots.
A standard lot size is 100 000 units. Units refer to the base currency being traded. The smaller the lots size traded, the lower will be profits, but also the lower will be losses. When traders talk about losses, they also use term “risks”.
Because trading in Forex is as much about losing money as about making money. Risks in Forex refer to the possibility of losing entire investment while trading. Trading Forex is known as one of the riskiest capital investments. In Forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created.